Molson Coors Beverage Co. reports fourth quarter net sales fell 7.7% (8.3% constant currency), primarily driven by Europe and Canada declines resulting from restrictions in the on-premise channel as a result of the coronavirus pandemic. But in the U.S., the company’s largest market, sales advanced 1.9%. The company reports a $1.4 billion net loss for the period.
For all of 2020, net sale fell 8.7% to $9.65 billion and net income fell 13.5% to $851.7 million, or $3.92.
The company, which suspended its dividend earlier because of the Covid pandemic, said it expects to reinstate its dividend in the second half.
“The revitalization plan we announced in October 2019 positioned our company well to weather the storms of 2020,” said Gavin Hattersley, president/ceo. “We built on the strength of our iconic core and in the second half of 2020, we achieved a record high portion of our U.S. portfolio in above premium products. We expanded beyond the beer aisle and we set the stage to build our emerging growth division into a $1 billion revenue business by 2023. We invested in our capabilities while supporting our people and our communities.”
“The fact is our plan is working,” added Hattersley. “When you consider what we set out to do under our revitalization plan and what we were faced with during the year,” particularly in Europe where the continued restrictions in the European on-premise channel had a significant impact on the year and quarterly results, “we accomplished an incredible amount in 2020 and that has given us a tremendous springboard for 2021.”
Molson Coors chief financial officer Tracey Joubert said, “While on-premise restrictions, and in particular our Europe business, drove declines in the top- and bottom-line in both the fourth quarter and for the full year, we enter 2021 with improved financial flexibility and have determined to reinstate guidance for the year.
“While uncertainty and on-premise challenges remain, particularly in Europe, we anticipate 2021 to be a year of both top-line growth, as we begin to benefit from the early successes of our revitalization plan, and of investment, as we continue to drive toward long-term revenue and underlying EBITDA growth.”